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23 November 2017
 |
| Onion (The Total Investment & Insurance Solutions) |
The
government on Thursday imposed a minimum export price (MEP) of USD 850 per
tonne on onion to increase domestic supplies and check rising prices.
MEP is the minimum rate below which exports
are not allowed. Onion MEP was scrapped in December 2015. The Total Investment & Insurance
Solutions
In a notification, the Directorate General of
Foreign Trade (DGFT) said: "Export of onion...Shall be permitted only on
Letter of Credit (LC) subject to a MEP of USD 850 per tonne till December 31,
2017."
Export of all varieties of onions will be
allowed only on LC, it added.
Concerned over the rise in onion prices,
Consumer Affairs Minister Ram Vilas Paswan in August had sought that MEP be
imposed on its exports by the commerce ministry. He also sought the removal of
sops on export of the kitchen staple. The
Total Investment & Insurance Solutions
Retail onion prices, which have shot up to Rs
50-65 per kg in most cities, have come under pressure due to tight domestic
supplies.
The government has asked state-run MMTC to
import 2,000 tonnes of onion, while other agencies Nafed and SFAC to buy onions
locally and supply in consuming areas. The
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Supplies got exhausted as large quantity of
exports were undertaken in the first four months of the current fiscal. The
country exported 1.2 million tonnes in April-July of this fiscal, up by 56
percent from the year-ago period.
Also, the new 2017-18 kharif crop -- which is
being harvested -- is expected to be less owing to fall in acreage. The Total Investment & Insurance
Solutions
Recently, a senior consumer affairs ministry
official had said that the new kharif crop is likely to be lower by 10 percent
as area sown is 30 percent lower.
About 40 percent of the country's total onion
crop is produced in the kharif season, and the rest during the rabi season. The
kharif crop, however, cannot be stored.
The Total Investment & Insurance Solutions
Maharashtra,
Karnataka, Madhya Pradesh, Bihar and Gujarat are the major onion producing
states.The Total Investment &
Insurance Solutions
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